Under the offer, Augusta shareholders will receive 0.17 of a
warrant to buy one HudBay share for each Augusta share in
addition to the original offer of 0.315 HudBay shares per
Augusta share.

The offer price of about C$3.56 per Augusta common share
represents a premium of about 11 percent to Augusta's Friday
close on the Toronto Stock Exchange.

The acquisition comes at a time when the price of copper has
fallen by nearly a third from highs above $9,900 a tonne in
February 2011. The metal was trading at about $6,875 a
tonne on Monday on the London Metal Exchange.

The global copper market is expected to return to a surplus
this year and next after four years of deficit as new mine
supply outstrips demand.

But beyond that the market is widely expected to revert to a
production shortfall as the pipeline of new supply is
significantly diminished by lower prices and a
shareholder-mandated austerity among the world's top miners.

The takeover underscores the continued interest in copper
assets given the longer-term outlook for the industrial metal.
Continued...